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How does depreciation (devaluation) affect the exports of a country? - Economics

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प्रश्न

How does depreciation (devaluation) affect the exports of a country?

लघु उत्तर
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उत्तर

  • Depreciation (or devaluation) makes a country’s goods cheaper for foreign buyers because its currency is weaker. This encourages more exports, as international customers can buy more for the same amount of their own currency.
  • For example, if the rupee depreciates, Indian goods become more affordable to foreign countries, boosting India’s exports.
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पाठ 15: Balance of Payments and Exchange Rate - TEST YOURSELF QUESTIONS [पृष्ठ २९६]

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फ्रँक Economics [English] Class 12 ISC
पाठ 15 Balance of Payments and Exchange Rate
TEST YOURSELF QUESTIONS | Q 38. b | पृष्ठ २९६
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